HARTFORD, Conn., July 19, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of New Jersey on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Par Pharmaceutical Companies, Inc. ("Par" or the "Company") (NYSE:PRX) between April 29, 2004 and July 5, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements concerning the Company's financial condition. Specifically, defendants reported financial results that were materially inflated as a result of accounting errors. These errors included the understatement of accounts receivable reserves. Additionally, the Company has admitted that its revenues were overstated and as a result, it has overpaid certain of its business partners with whom the Company had various profit sharing arrangements. Lastly, Par has announced that it will write-off approximately $15 million in inventory due to flawed physical inventory procedures.
As a result of its internal review, Par has decided to restate its previously reported financial results for the fiscal years 2004, 2005 and the first quarter of 2006. On this news, shares of Par fell $4.78 to $13.47 per share on July 6, 2006.
If you are a member of the class, you may, no later than September 15, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.